Insights into the Latest 13F Filing Reveal Significant Portfolio Changes
Donald Smith & Co (Trades, Portfolio), known for its deep-value investment strategy, recently disclosed its 13F filing for the second quarter of 2024. Founded by the late Donald G. Smith, the firm continues to follow his investment philosophy, focusing on undervalued companies with positive earnings potential. Smith, who passed away in 2019, had a storied career in finance, including roles at Capital Research Company and as CIO of Home Insurance Company before establishing Donald Smith & Co (Trades, Portfolio). His approach targets stocks in the lowest decile of price-to-tangible book ratios, aiming for substantial long-term returns.
Summary of New Buys
During the second quarter, Donald Smith & Co (Trades, Portfolio) initiated positions in three new stocks:
- Ternium SA (TX, Financial) was the most significant new addition with 1,346,641 shares, representing 1.29% of the portfolio and valued at $50.57 million.
- NMI Holdings Inc (NMIH, Financial) followed, with 872,747 shares making up approximately 0.76% of the portfolio, totaling $29.71 million.
- The smallest new position was in Dakota Gold Corp (DC, Financial), comprising 305,000 shares, which accounted for 0.02% of the portfolio and valued at $777,750.
Key Position Increases
The firm also raised its stakes in 18 existing holdings:
- The Mosaic Co (MOS, Financial) saw an addition of 955,199 shares, increasing the total to 2,083,233 shares. This adjustment represents an 84.68% increase in share count and a 0.7% impact on the current portfolio, valued at $60.21 million.
- Allegiant Travel Co (ALGT, Financial) had an additional 516,545 shares, bringing the total to 826,326. This adjustment represents a 166.75% increase in share count, valued at $41.51 million.
Summary of Sold Out Positions
Donald Smith & Co (Trades, Portfolio) exited two positions entirely in this quarter:
- Chord Energy Corp (CHRD, Financial) was completely sold off, with all 384,301 shares liquidated, impacting the portfolio by -1.59%.
- Argonaut Gold Inc (ARNGF, Financial) also saw a complete exit with all 15,241,745 shares sold, causing a -0.1% impact on the portfolio.
Key Position Reductions
The firm reduced its holdings in 39 stocks, with significant reductions in:
- International Seaways Inc (INSW, Financial) was reduced by 1,238,567 shares, marking an 84.29% decrease and a -1.53% impact on the portfolio. The stock traded at an average price of $58.25 during the quarter and has seen a -16.95% return over the past three months and a 12.42% year-to-date return.
- Kinross Gold Corp (KGC, Financial) saw a reduction of 8,506,280 shares, a 74.8% decrease, impacting the portfolio by -1.21%. The stock's average trading price was $7.24 during the quarter, with a 14.26% return over the past three months and a 44.15% year-to-date return.
Portfolio Overview
As of the second quarter of 2024, Donald Smith & Co (Trades, Portfolio)'s portfolio included 63 stocks. The top holdings were 8.32% in AerCap Holdings NV (AER, Financial), 4.59% in Eldorado Gold Corp (EGO, Financial), 4.32% in M/I Homes Inc (MHO, Financial), 4.23% in United States Steel Corp (X, Financial), and 4.14% in Civitas Resources Inc (CIVI, Financial). The holdings are mainly concentrated in 8 of all the 11 industries: Financial Services, Basic Materials, Industrials, Consumer Cyclical, Energy, Real Estate, Technology, and Utilities.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
